- Art galleries can pay VAT on their margin even if they purchase artwork from a company controlled by the artist who created the work.
- The condition is that it must be the first introduction of the artwork to the EU market, as ruled by the Court of Justice of the EU.
- The dispute involved the application of articles 311 to 316 of the EU VAT directive.
- According to these rules, a seller of artwork can pay tax on their margin if they bought the work from a non-taxpayer or a VAT taxpayer for whom the transaction is tax-exempt.
- The seller should generally be the creator of the work or their legal successor.
- In this case, a French gallery bought paintings from a British company with the artist as a partner and sold them using the VAT margin scheme.
Source: podatki.gazetaprawna.pl
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
